While most Americans are looking at their stock portfolios in horror, a few see today’s declining market as a prime time to invest.

An increasingly-common question coming from these risk-takers is: should I use my HELOC money to purchase stocks?

It’s true that HELOCs and traditional home equity loans are now offered with extremely low rates. However, this money is attached to your home AND you may be liable to pay it back even if it forces your property into foreclosure. If the full amount isn’t recovered, you may lose your home and have a judgment against you (assuming that you live in a recourse state).

In a nutshell: No. It’s never smart to use a HELOC for any speculative investment, no matter how safe it may seem.

See Also:

5 Financially Sound Ways to Use Your HELOC

Is a HELOC Right for You?

Tags | Heloc, home equity line of credit